Core Viewpoint - He Yuan Bio has successfully passed the review for its initial public offering on the Sci-Tech Innovation Board, but it continues to face challenges such as ongoing losses and declining revenue [1][4]. Financial Performance - The company reported a significant decline in revenue, with a 37.88% drop in the first quarter of 2025, resulting in a net loss of approximately 48.2 million yuan, which is a 64.38% increase in losses compared to the same period last year [4]. - From 2022 to 2024, He Yuan Bio's revenue was 13.4 million yuan, 24.3 million yuan, and 25.2 million yuan, while the net losses were 144 million yuan, 187 million yuan, and 151 million yuan, totaling approximately 482 million yuan in cumulative losses over three years [3][4]. Capital Raising and Cash Flow - The company has relied on financing activities to maintain operations, with net cash flow from financing activities of 568 million yuan, 72.6 million yuan, and 104 million yuan from 2022 to 2024, while cash flow from operating activities remained negative [4]. Business Strategy and Product Development - He Yuan Bio attempted to diversify into the cosmetics sector with its brand "San de San Ci Fang," but all product registrations have been canceled, indicating a retreat from this market [5][6][7]. - The company is now focusing on the production of recombinant human fibronectin for beauty products, with revenue from other business segments showing a slight increase but still accounting for less than 5% of total revenue [7].

Core Viewpoint - Wuhan Heyuan Biotechnology Co., Ltd. has successfully passed the review for listing on the Sci-Tech Innovation Board, moving closer to its IPO after overcoming various challenges, including the expiration of financial documents [1] Fundraising and Financials - The company plans to raise approximately 2.4 billion yuan through the issuance of nearly 90 million shares, significantly lower than the previously planned 3.5 billion yuan [2][4] - The funds will be allocated to three main projects: 1.655 billion yuan for the construction of a recombinant human albumin industrialization base, over 600 million yuan for new drug research and development, and 100 million yuan for working capital [2][3] - The total investment for the recombinant human albumin industrialization base project is 1.909 billion yuan, with an expected annual production capacity of 120 tons of OsrHSA raw liquid [3] Revenue and Business Performance - The company has reported continuous losses over the past three years, with revenues of 13.4 million yuan in 2022, 24.3 million yuan in 2023, and an estimated 25.2 million yuan in 2024, while net profits were -122 million yuan, -187 million yuan, and -151 million yuan respectively [8][10] - The main source of revenue comes from pharmaceutical excipients and research reagents, with a small portion from beauty products, which accounted for less than 5% of total revenue [5][10] Legal Issues - The company is involved in a patent infringement lawsuit initiated by Ventria Bioscience, which claims that Heyuan's products infringe on its patents. The case has been ongoing since 2020, with a recent counter-suit filed by Heyuan against Ventria [12][13]